Iran to Ink Oil Contracts Worth $10bn by End of March 2017

New oil contracts worth 10 billion dollars are expected to be signed in remaining half of the current Iranian calendar year (began March 20, 2016), the deputy petroleum minister said.

Amir Hossein Zamaninia made the remarks on the sidelines of a ceremony for inking a cooperation document between Iran's National Petrochemical Company (NPC) and the Anglo-Dutch energy giant Royal Dutch Shell.

The Letter of Intent(LoI) signed between NPC and Shell is a big step forward, he added.

"This re-engagement can be taken for good omen and we hope that we will build and pave the path for long-term relationships that would suit the interests of both companies."

Iran's petrochemical projects could become operational sooner than other projects in the oil and gas industry, the official added.

NPC and Shell on Sunday signed a LoI for starting studies to carry out petrochemical projects in Iran.

A ceremony was held here in Tehran at NPC's locality for singing the document which is marked as the first firm step taken by the two sides since removal of the US-led sanctions on Tehran's nuclear program.

From NPC, Managing Director of the company Marziyeh Shahdaei and from Shell Hans Nijkamp, Shell Vice President signed the deal at the 13th floor of the NPC building on Sunday.

"We have formulated an aggressive and ambitious but realistic development program part of which is currently under way. Our mission is to be increase exhibiting capacity from over 60 million tons per year in 2016 to 100 million tons in 2020 and then to about 160 mt in 2025," said NPC Chief Shahdaei during the ceremony.

"We have been in discussion with the NPC for some time to come to this Letter of Intent signing ceremony," Nijkamp told Shana prior to signing the document.